European Government Bonds Advance on Concern Hedge Fund Losses May Widen

(Bloomberg) -- European government bonds advanced in
London as concern losses at hedge funds run by Bear Stearns Cos.
may increase attracted investors to the safest assets.

Gains in debt sent 10-year yields down from near a five-year
high as Bear Stearns funds collapsed, stoking concern on
valuations in the collateralized debt obligations market. The
perceived risk of owning European corporate bonds, as measured by
credit default swaps, rose the most in three months today.


Read more at Bloomberg Bonds News